Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) is among the 7 Cheap Pharmaceutical Stocks to Buy According to Hedge Funds. Amneal Pharmaceuticals, Inc. (AMRX) Added to S&P SmallCap 600 Index, Boosting Investor Visibility The next stock on our list is Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX). TheFly reported on Feb 11 that JP Morgan raised AMRX price target by $4 and maintained a Buy rating. Separately, on January 29, Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) announced that it would be added to the S&P S ...

Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular strategy for finding undervalued companies based on fundamental analysis [2] Company Analysis: Amneal Pharmaceuticals (AMRX) - Amneal Pharmaceuticals is currently rated with a Zacks Rank 2 (Buy) and has an A grade for Value, making it a notable stock for value investors [3] - The company has a Price-to-Sales (P/S) ratio of 1.55, significantly lower than the industry average of 4.46, indicating potential undervaluation [4] - Amneal's Price-to-Cash Flow (P/CF) ratio stands at 10.89, compared to the industry average of 14.01, further supporting the notion of being undervalued [5] - Over the past 12 months, AMRX's P/CF has fluctuated between a high of 61.60 and a low of 8.57, with a median of 16.33, showcasing its cash flow performance [5] - Overall, the metrics suggest that Amneal Pharmaceuticals is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [6]

Group 1 - Amneal Pharmaceuticals, Inc. has been added to the S&P SmallCap 600 Index, effective prior to the opening of trading on January 30, 2026 [1] - The S&P SmallCap 600 Index is a widely followed benchmark for U.S. small-cap equities, used by active managers and investors seeking exposure to companies with disciplined criteria for market capitalization, liquidity, sector representation, and sustained profitability [2] - The inclusion of Amneal in the index reflects its consistent operating and financial performance, placing it among a select group of pharmaceutical and biotechnology companies [2] Group 2 - The recognition of being included in the S&P SmallCap 600 Index is expected to enhance Amneal's visibility within the investment community and support the expansion of its investor base over time [3] - Inclusion in the index is typically associated with increased trading liquidity and broader investor awareness for companies in the U.S. small-cap universe [3] - Amneal Pharmaceuticals is a global biopharmaceutical company that develops, manufactures, and distributes over 290 pharmaceuticals, primarily in the United States, with a focus on complex product categories and therapeutic areas [4]

Group 1: Stock Performance - Several healthcare and biotech stocks experienced significant gains in after-hours trading, with movements largely occurring without specific company news [1][2][3][4] - Acumen Pharmaceuticals, Inc. (ABOS) rose by 8.09% to close at $2.94, adding $0.22 to its share price [1] - Fulgent Genetics, Inc. (FLGT) increased by 5.98% to $28.90, gaining $1.63 in extended trading [1] - Fractyl Health, Inc. (GUTS) climbed 5.19% to $2.23, up $0.11 after hours [1] - Coeptis Therapeutics Holdings, Inc. (COEP) finished up 4.14% at $13.85, a gain of $0.55 [2] - Jin Medical International Ltd. (ZJYL) saw an increase of 4.04% to $0.16, up $0.0061 [2] - Alignment Healthcare, Inc. (ALHC) gained 5.92% to $22.20, adding $1.24 in after-hours trading [2] - Orthofix Medical Inc. (OFIX) rose 4.58% to $13.94, up $0.61 [3] - Alto Neuroscience, Inc. (ANRO) advanced 4.52% to $17.57, gaining $0.76 [3] - Immix Biopharma, Inc. (IMMX) increased by 3.87% to $6.17, adding $0.23 [3] - Amneal Pharmaceuticals, Inc. (AMRX) rose 3.76% to $14.35, up $0.52, and is set to replace TTM Technologies in the S&P SmallCap 600 index [3] - Tyra Biosciences, Inc. (TYRA) gained 3.76% to $32.58, adding $1.18 in extended trading [4]

Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]

Core Viewpoint - Amneal Pharmaceuticals, Inc. will release its fourth quarter and full year 2025 financial results on February 27, 2026, prior to market opening, and will host an audio webcast for investors [1]. Group 1: Financial Results Announcement - The financial results will be accessible through the Investor Relations section of the Company's website [2]. - An audio webcast will be held at 8:30 a.m. ET on the same day [1]. - Individuals can register for the webcast and access the call through a conference line with specific dialing instructions provided [2]. Group 2: Company Overview - Amneal Pharmaceuticals is a global biopharmaceutical company headquartered in Bridgewater, NJ, with a diverse portfolio of over 290 pharmaceuticals primarily in the U.S. market [3]. - The Company operates in various segments, including Affordable Medicines, Specialty, and AvKARE, focusing on complex product categories, branded pharmaceuticals, and distribution for federal and retail markets [3]. Group 3: Investor Contact Information - The VP of Investor Relations is Anthony DiMeo, and contact information is provided for inquiries [4].

Company Overview - Amneal was founded in 2002 in Paterson, New Jersey, and is dedicated to serving the U.S. market with a significant mission in the pharmaceutical industry [3][4] - The company has achieved substantial growth, filling 175 million prescriptions with its products over the past 23 years [5] Product Offerings - Amneal focuses on a diverse range of complex dosage forms, including transdermals, in-house injectables, respiratory products, topicals, liquids, and oral solids [5] - Quality is the highest priority for the company, positioning itself as a leader in the pharmaceutical sector [5]

Core Insights - The company experienced significant growth in Q3, with a strategic portfolio growth of 39%, now representing over 60% of total business [3] Group 1: Financial Performance - The company will announce Q4 guidance on February 5 [2] - Q3 performance was described as spectacular, indicating strong underlying growth [3] Group 2: Strategic Developments - The company acquired Arthrosi to strengthen its gout franchise, which was deemed a fantastic opportunity [3] Group 3: Pipeline Updates - Recent readouts include developments in IDS interferon gamma-driven sepsis, which may generate interest [4]

Core Insights - Amneal Pharmaceuticals is transitioning from a traditional retail generics model to focus on complex dosage forms and specialty products, with a significant emphasis on the U.S. market, which accounts for approximately 98% of its revenue [2][3] Financial Performance - The company has doubled its revenue and EBITDA over the past six years, reducing net leverage from 7.4 to 3.7, and expects EBITDA to grow faster than revenue in 2026, with projected gross margin improvement of 50–60 basis points and double-digit EPS growth [4][6][8] Product Strategy - Amneal is shifting towards higher-value "affordable medicines," including complex generics, injectables, biosimilars, and branded neurology, while reducing its reliance on standard oral solids, which now represent about 25% of revenue [1][5][12] - The company has launched three biosimilars and is preparing to launch two denosumab presentations, aiming to become a top-three player in the biosimilars market [14][15] Crexont Performance - Crexont, Amneal's Parkinson's therapy, reached approximately 22,000 patients in its first year, achieving a 3.2% market share, with expectations to double sales to over $120 million this year and target a 5%–6% market share by 2026 [5][9][10] R&D and Future Growth - R&D investment is expected to remain around $180 million, with a focus on generating additional Phase 4 data to support product performance and market uptake [7][11] - The company is also pursuing vertical integration in manufacturing, particularly for biosimilars, with a target completion by 2026 [15][16] Market Dynamics - The competitive landscape for retail generics has intensified since 2017–2018 due to increased FDA approvals and buyer concentration, prompting Amneal to adapt its strategy [1][2] - The company anticipates typical annual price erosion of 4%–5% as a stable headwind, but expects to mitigate this through product mix and operational efficiencies [7]

Amneal Pharmaceuticals FY Conference Summary Company Overview - **Company**: Amneal Pharmaceuticals (NasdaqGS:AMRX) - **Industry**: Pharmaceuticals - **Focus**: Affordable medicines, including retail generics, injectables, and biosimilars [2][3] Key Points and Arguments Company History and Mission - Founded in 2002 in Paterson, New Jersey, with a focus on affordable medicine [2] - Currently fills 175 million prescriptions, emphasizing quality and complex dosage forms [3] - Aims to be the number one company in affordable medicines in the U.S. by 2030 [4] Market Position and Strategy - Currently ranked third or fourth in the U.S. generics market, with 98% of revenue from the U.S. [4] - Shifted focus from retail oral solids (25% of revenue) to complex generics and biosimilars due to increased competition [4][10] - Plans to double the business in the affordable medicines category over the next few years [10] Financial Performance - Revenue and EBITDA have doubled over the past six years, with net leverage decreasing from 7.4 to 3.7 [9] - Projected EBITDA for 2026 is expected to exceed $685 million [9] - Anticipates high single-digit growth across various segments, including biosimilars and specialty products [10][42] Product Pipeline and Innovations - Launched three biosimilars, with plans to launch two more (Denosumab presentations) [5] - Crexont, a Parkinson's treatment, has already reached 22,000 patients in its first year, with a market share of 3.2% [11][12] - Focus on developing complex generics, including ophthalmic and inhalation products, with a strong pipeline of 20-30 key products [14][40] Biosimilars Market - Anticipates significant growth in the biosimilars market, with 130 candidates in development [10][20] - Plans to vertically integrate the biosimilars business, aiming to be among the top three players in the market within five years [52] - Collaboration with Pfizer for peptide manufacturing, enhancing global supply capabilities [8][56] Challenges and Opportunities - The generics market is experiencing price erosion of 4-5%, but new product approvals are expected to drive growth [64] - The company is focused on maintaining a disciplined approach to capital deployment, prioritizing biosimilars and branded assets [67] - The competitive landscape for biosimilars is consolidating, with fewer players remaining, which may enhance market opportunities [20] Future Outlook - Expected revenue growth from specialty products and biosimilars, with a focus on affordable innovation [29][67] - Plans to invest more in R&D for biosimilars and specialty products, shifting resources from complex generics [27][29] - Anticipates double-digit EPS growth due to improved operating efficiencies and reduced interest expenses [66] Additional Important Insights - The company has received positive feedback from physicians regarding Crexont, indicating strong market acceptance [35] - AI is being utilized for marketing strategies, significantly increasing the likelihood of prescriptions for Crexont [32] - The company is committed to affordable access to medicines, with Crexont priced at approximately $6,000 per year [36] This summary encapsulates the key points discussed during the Amneal Pharmaceuticals FY Conference, highlighting the company's strategic direction, market positioning, financial performance, and future growth opportunities.